Cb 1.1

1. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–1 Consumer Behaviour • Why study consumer behaviour? • What is consumer behaviour? • How does it affect marketing strategy?
2. Market research Marketing manager Consumer behaviour ‘the engine of marketing’ Advertising Distribution Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–2 The Marketing Car
3. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–3 Consumer behaviour knowledge is... the ‘engine’ of a marketing strategy
4. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–4 Why study consumer behaviour? • The study of consumer behaviour is relevant to: – Consumers – Marketers – Students – Scholars – in fact all those interested in human behaviour • By studying consumer behaviour we try to understand & gain insight into: – Consumer decision making processes – What we buy, how we buy, and why we buy • Enables us to become better consumers and marketers • We try to gain a better understanding of consumer related behaviour and why individuals act in consumer related ways.
5. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–5 Types of consumers Personal Consumer Is the individual who buys goods for his or her own use. Household Consumer Is the individual or group of individuals that buy goods for the household or family unit. Organisational Consumer Includes private businesses, government departments and agencies, and institutions.
6. 1–6 Understanding Consumer Behaviour
7. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–7 Consumer Behaviour and Marketing Strategy • Positioning strategy • Market segmentation • New products • New market applications • Global marketing • Marketing mix • Consumerism • Non-profit marketing
8. 1–8 How Consumer Influences Drive Marketing Decisions
9. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–9 Definitions of Consumer Behaviour • The dynamic interaction of cognition, behaviour and environmental events by which human beings conduct the exchange aspects of their lives (American Marketing Association) • A discipline dealing with how and why consumers consumers purchase (or don’t purchase) products and services. (Neal et al.)
10. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–10 Definitions of Consumer Behaviour (cont.) • Those behaviours performed by decision-making units in the purchase, usage and disposal of goods and services (Kotler & Levy) • The decision process and physical activity individuals engage in when evaluating, acquiring, using or disposing of goods and services (London & Della Bitta)
11. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–11 Definitions of Consumer Behaviour (cont.) • Those actions directly involved in obtaining, consuming, and disposing of products and services, including the decision processes that precede and follow these actions (Engel, Blackwell & Miniard)
12. 1–12 Consumer Lifestyle and Consumer Decisions
13. 1–13 Consumer Decision Process
14. 1–14 Factors that Determine and Influence Consumer Lifestyles
15. 1–15 Overall Model of Consumer Behaviour
16. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–16 Influences on Behaviour • Influences on Behaviour • B=f(PxS) • Where:  B= behaviour  P=psychological set of the person  S=the situation  External influences • culture, religion, social class and family  Internal influences • (genetic factors) Talents, Physical, Motivation, intelligence, personality
17. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–17 Situational Influences • Situations influence consumer behaviour – four main types of situations – can be categorised according to five main dimensions – implications for marketing strategy
18. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–18 Types of Situation • Communication situation – Where? Alone or with others? Surrounding noise? • Purchase situation – Where? Alone or with others? In a hurry? • Usage situation – With guests or alone? For pleasure or for work? • Disposal situation – Before the next purchase? Trade-ins? – Or after the purchase, e.g. packaging
19. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–19 Consumer Behaviour is Product–Person–Situation Specific
20. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–20 The Role of Situation in Consumer Behaviour
21. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–21 Five Dimensions of Situational Influence • Physical surroundings • Social surroundings • Temporal perspectives • Task definition • Antecedent states
22. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–22 Examples of Physical Surroundings • Store location • Interior decor • Music • Smell / aromas • Temperature (air-conditioning or heating) • Amount of choice provided (by product category or across the categories)
23. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–23 The Impact of Background Music on Restaurant Patrons
24. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–24 Impact of Physical Density on Shopper Perceptions
25. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–25 Examples of Social Surroundings • Types of customers in the store • Queues and crowding • Whether the consumer is likely to be known by others/recognised • Whether there are high-profile people/celebrities shopping at that store • Whether the product will be consumed privately or in the presence of others
26. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–26 Examples of Temporal Influences • Whether the product is seasonal • Whether the product is urgently required (snack between lectures) • Time available for shopping limited/excess (the product may be just an excuse for shopping) • How long the previous product lasted or was expected to last
27. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–27 Examples of Task Influences • Is the product utilitarian or used as a status symbol? • Is it a gift or for oneself? • Must the product be long-lasting/tough? (e.g. an everyday watch) or decorative? (e.g. a dress watch) • Is the product intended for several uses? (e.g. a family computer for study and internet access)
28. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–28 Examples of Antecedent States • Moods – Feeling sad triggers buying sweets or going to a funny movie – Feeling rejected triggers buying games software • Momentary conditions – Can’t eat ice cream because teeth hurt – Can’t buy a book because left the credit card at home – Buy more groceries because hungry before shopping
29. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–29 Ritual Situations • A ritual situation can be described as a set of interrelated behaviours that occur in a structured format, that have symbolic meaning and that occur in response to socially-defined occasions • Important to marketers as they define consumption, e.g. anniversaries, seasonal gifts • Traditions and rituals being continued and developed, e.g. Valentine's Day
30. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–30 Situational Influences and Marketing Strategy • Developing a situational influence matrix • Positioning the product based on situation • Segmenting the market based on usage situation – alone – in combination with other segmentation variable – person/situation segmentation
31. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–31 The Situational Influence Matrix
32. Copyright © 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 1–32 Usage Situations and Product Positioning

Editor's Notes

These are 3 fundamental questions we need to consider. We are all ‘consumers’ as consumption of products and services is a vital part of our society and economy.
Besides this individual need, your career or current employment or business is continually coming in contact with and using Consumer Behaviour knowledge.
Aspects of CB rely on psychology, sociology, economics and marketing theories and knowledge.
The vital aspect is to know how to apply this knowledge to the formulation of the appropriate marketing strategies for competitive advantage.
This example will stress why CB is vital.
Market research: showing us the road ahead
Marketing manager: in control
Advertising: the very visible component of marketing
Distribution: involves moving products from source to destination
CB: the vital component in marketing
We need to have consumer behaviour knowledge to be able to develop effective marketing strategies.
In order to understand how consumers behave, we need to appreciate the following:
How do they purchase and use the products?
Who are they? Where are they situated? and other vital demographic information.
Psychological factors have an influence. For example, they affect how, when, what, and how much they buy. We need to understand and appreciate how these factors influence their behaviour.
The influence of others is also important: friends, family, etc.
How do they take in marketing information such as advertising, process it and use this to make buying decisions?
Thus to understand consumers’ behaviour patterns we need to understand these factors and their dynamics.
This allows marketers to be able to devise appropriate marketing strategies and allows the regulatory bodies—usually government bodies but they can be industry groups—to set rules and guidelines to protect consumers from unethical and unfair marketing practices.
Positioning: ‘battle for the mind of the consumer’ (Ref: Tout + Ries). How consumers perceive the product.
Segmentation: the segments are now smaller, greater importance is placed on understanding the consumer segments, a need to meet specific requirements.
Many new products fail because CB aspects are overlooked, e.g. tea bags and instant coffee faced failure because consumers saw them as inferior, not innovations.
Marketers can find new markets with existing products.
Despite the fact that many products are marketed globally, marketers must appreciate the subtle differences between cultures.
The marketing mix must take into account consumers’ reactions.
Consumerism is now more important than ever: for example, the way that companies react to product recalls can make or break them.
Non-profit organisations such as churches and universities need to have sound marketing strategies in place to survive in the competitive market place.
The model also shows the major sources of consumer influence that marketing managers should understand when they are developing marketing strategy to solve consumer problems.
Direct students to study Exhibit 1.5: The consumer behaviour audit. (See pages 13-15.)
The AMA definition emphasises thinking, behaviour and influences on consumers.
Although the Neal definition is simple, it emphasises the how and why of consumer behaviour. (See page 5.)
Kotler’s definition adds the concept that we are dealing with decision-making units, i.e. consumers don’t always act alone, particularly in households and industrial buying situations.
The London definition emphasises the actual decision-making process of buying and consuming.
This is similar in that it emphasises the ‘actions’ of decision-making.
This conceptual and organisational model provides an overview of consumer behaviour.
The purpose of the consumer behaviour model presented in this chapter is to outline the major conceptual areas of consumer behaviour and illustrate their relationships with one another. The model also shows the major sources of influence that marketing managers should understand when they are developing marketing strategy to solve consumer problems.
A major influence in the consumer behaviour model presented in this chapter is the element of consumer lifestyle. (See p. 18.)
In a particular situation, the consumer decision process begins once the consumer realises that there is a difference between the actual and the desired state, i.e. problem recognition. The consumer searches for information—this can be either internal (think about it) or an external search (e.g. ask someone).
They then evaluate this information, make a selection and choose a location for the purchase.
This experience and the product are evaluated and information is either stored in memory or acted upon, e.g. ‘Don’t buy that product again because it tastes salty!’ (See page 19.)
Which of these are internal and which are external to the individual?
The combination of these external and internal influences is manifested in consumer lifestyles, and the products and services individuals consume to maintain and/or change that lifestyle. (See pages 20–24.)
Individuals engage in purchasing to improve their lifestyle. This is a major influence on their consumption of products and services. Based on experiences (below) and their individual attitudes and needs (above) they choose certain products. Retailers and marketers need to recognise the complexity involved and that some influences are more important than others to individual consumers. Model on page 25, information and details pages 17–24.
All behaviour takes place within the context of a certain situation. Therefore, behaviour will not only vary between consumers but the same consumer will exhibit different behaviours from one situation to the next.
There are 4 types of situations.
There are 5 dimensions of situational influences.
The importance of these will be reflected in the influence they have on marketing strategy.
The situation in which consumers receive information has an impact on their behaviour.
If they are preoccupied then it is the marketer’s challenge to attract their attention, e.g. they may be in a group, travelling, or not interested.
Shoppers in convenience stores, in a group, or with a shortage of time are less likely to be price sensitive and search and compare brands.
Marketers need to understand how the usage situation influences consumers’ selection and use of products. Some brands are selected for guests, while others are selected for private use, e.g. generic brands are not likely to be used for guests. Purchasing influences alter if the purchase is for a business use or one’s personal use, e.g. a car-buyer is more objective for business purchase.
Consumers frequently need to dispose of used goods and/or packaging and this can become a major influence on the purchase decision, e.g. trade-in of a car.
For further information refer to pages 37–38.
Situational influences combine with individual characteristics to affect shopping preferences and purchase behaviour. Consider how you react to different weather, such as a hot or cold day. (See page 38.)
Situation is a set of factors apart from the consumer and the product. In some circumstances the consumer can be so brand loyal or distracted that the situational influences are ignored.
A marketer must understand:
1. when a particular situation will affect consumer behaviour.
2. how strong the effect is likely to be.
3. the way in which the situation will influence behaviour.
It is vital that as a marketer you appreciate the likely response in the consumer. (See page 39.)
A useful classification scheme was developed by R.W. Belk based on 5 objectively-measured situations. These include Physical and Social surroundings, Temporal perspective, Task definition, Antecedent states.
Marketers can use this information when determining whether a situation has an effect on a consumer’s purchase behaviour. (See Exhibit 2.2, page 40.)
Being located in the correct retail precinct is most important. A bank would never consider locating in a low-rental shopping precinct. In turn, other stores try to be located near reputable stores.
Up-market clothing stores rely on extremely stylish interior fittings, appropriate background music and smartly dressed and well-trained shop assistants.
Coffee stores and bakeries rely on aromas to create the right atmosphere for customers.
Shopping centres use cool temperatures to entice customers to shop longer on hot summer days, while night clubs have been known to use warm temperatures to encourage clients to consume more drinks.
Stores such as supermarkets influence consumers by providing an extended range of products and in turn, consumers then expect an exhaustive range of brands, sizes, flavour varieties, etc. (See page 40.)
(See pages 41–42.)
This diagram shows that increased physical density of a store can cause shoppers to alter their shopping behaviour. These perceptions can cause shorter shopping time and less purchases, a continued feeling of dissatisfaction with the store and a reduced confidence in the purchases that have been made. (See page 43.)
Social surroundings deal primarily with other persons present who could have an impact on the individual consumer’s behaviour. This can be a positive or negative influence: for example, consumers shopping for golf equipment or motor bikes would feel more comfortable when shopping with like-minded people.
Queues can be positive, e.g. night club, or negative e.g. grocery shopping.
Shopping is now an alternative entertainment on weekends, for example young adolescents ‘go shopping’ to meet friends. Celebrities such as footballers are given encouragement to visit certain stores and bars.
Some products need to be consumed privately, e.g. mouth wash. Hence a new product, mouth freshener gum, has provided an opportunity for public mouth freshener use.
Temporal perspectives deal with the effect of time on consumer behaviour. This dimension of a situation may be specified in units ranging from a day to a season of the year. Clothes and many sporting goods are particularly affected. Events such as Mother’s Day are used as reasons around which major campaigns are staged in shopping malls.
Snacks such as a pie at the football are examples of time-related influences. Convenience stores and stores at service stations are other examples.
Consumers may need reminding that certain clothes should only be worn for a season and not until they wear out!
(See page 46.)
Task definition reflects the purpose or reason for engaging in the consumption behaviour. The task may reflect the different user roles anticipated by the individual. For example, someone shopping for glassware for a wedding present is in different situation than if they were shopping for the same product for personal use.
A family computer may need to be capable of several tasks by a range of users. (See page 47.)
Antecedent states are features of the individual that are not lasting or relatively enduring characteristics. They are momentary moods or conditions. Moods can be states of high excitement or depression. They can trigger desires for certain foods or entertainment and marketers can harness this and encourage certain products to become associated with these moods.
Some momentary conditions can cause a consumer to feel differently and they may buy more or less in these situations. (See pages 47–48.)
(See page 49.)
Many situational influences are known to marketers and they use this information as a basis of market segmentation and in the targeting of advertising.
Positioning strategies can be used to associate certain products with certain situations: thus the situation can recall a given product—such as Coke when at the beach and having fun.
(See page 50.)
(See page 51.)
Use situations ranging from ‘private consumption at home’ to ‘consumption away from home’ and ‘where there is a concern for other people&apos;s reaction to you’ have been scaled for similarity. Use situations ‘to clean my mouth in the morning’ and ‘before an important business meeting in the afternoon’ are compared. It can be seen for example that toothpaste is perceived as the product for morning use and mint-flavoured gum is perceived as being the product for afternoon use. This position can be used when creating an appropriate marketing strategy. (See pages 50–51.)

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Editor's Notes